Plz give answer for this question
Dear student,
profit = 30,000
Gain/sacrifice ratio = new share - old share
A = 5/10-2/5 = 5-4/10 = 1/10 (gain)
S =3/10- 2/5 = 3-4/10 = -1/10 (loss)
P = 2/10 - 1/5 = 2-2/10 = 0
Amount to be adjusted = 30,000 x 1/10 = 3000
Answer: (A) S's capital account will be debited by 3000 and A's capital account credited by 3000
Regards
profit = 30,000
Gain/sacrifice ratio = new share - old share
A = 5/10-2/5 = 5-4/10 = 1/10 (gain)
S =3/10- 2/5 = 3-4/10 = -1/10 (loss)
P = 2/10 - 1/5 = 2-2/10 = 0
Amount to be adjusted = 30,000 x 1/10 = 3000
Answer: (A) S's capital account will be debited by 3000 and A's capital account credited by 3000
Regards